ASML dips after Netherlands pulls license for China exports

— Computer chip equipment maker ASML said the Dutch government had partially revoked an export licence for the shipment of some of its machines to China, prompting a slide in shares and criticism from Beijing.

The company said the government had pulled an export licence for some machines in a model range that, after U.S. government pressure aimed at undermining China’s ability to make its own chips, had required a Dutch license since September 2023.

ASML said it has received “further clarification of the scope and impact” of more recent U.S. rules, which it said will affect sales to “a limited number of advanced production facilities.”

It was unclear how many machines would be affected by the cancellation, although the company said it would not have a material impact on 2023 earnings.

ASML shares fell 2.5 percent to close at 664.3 euros ($728.14) on the first trading day of 2024.

In recent years, China has been ASML’s third-largest market after Taiwan and South Korea, but it was the biggest in the third quarter of 2023, with 46 percent of the company’s sales.

Chinese customers had been advised not to expect to receive licences for the NXT:2050i and NXT:2100i systems affected by the license revocation from Jan. 1, 2024.

Beijing criticized the latest move, with foreign ministry spokesman Wang Wenbin calling on the Netherlands “to protect the common interests of both countries and their companies, and maintain the stability of international supply chains.”

A spokesperson for the Dutch foreign ministry said on Tuesday it reviews export license requests on a case by case basis on national security grounds.